Anna city council approves sales tax revenue bonds

Tuesday

Dec 6, 2016 at 2:05 PMDec 6, 2016 at 4:42 PM

By Shalene White, Anna-Melissa Tribune

Following the city’s vote to approve a sales tax reallocation on Nov. 8, the Anna City Council met on Nov. 22 to authorize the issuance and sale of sales tax revenue bonds by the Anna Community Development Corporation.

Other items included affirming a sales tax remittance agreement and enacting other provisions relating to the subject.

The Anna Community Development Corporation has negotiated the purchase of an 85-acre tract of land located at the northeast corner of State Highway 5 and the Collin County Outer Loop.

The CDC plans to build and market the land as a business park, an area for office buildings, to increase employment in Anna and diversify the tax base. After reviewing financing options, the CDC and Anna Economic Development Corporation decided to jointly purchase the property.

The second item to be voted on was an ordinance authorizing the issuance and sale of city of Anna, Texas general obligation refunding bond, series 2016, levying an annual ad valorem tax to be able to pay the bond and enacting other provisions relating to the subject. In other words, the city of Anna will receive a general obligation refunding bond, series 2017, to refinance the combination tax and revenue certificate of obligation, series 2007, and a portion of the currently outstanding general obligation refunding bond, series 2007.

According to the plan of finance, it is expected that the fixed interest rate on the 2016 bond will be lower than the current 3.95 percent on the refunded obligations.